Fed Buys $5 Billion of GSE Debt; Treasury on the Hook
December 10, 2008
The Federal Reserve started to deliver on its pledge to purchase up to $100 billion of Fannie Mae, Freddie Mac and Federal Home Loan Bank debt. Late last week, the Fed purchased $5 billion worth of the GSEs’ debt maturing in 2009 and 2010, helping to reduce mortgage rates and spreads in the process. Initial purchases are to be mostly fixed-rate, non-callable senior benchmark securities...
It will be the 11th issuance of its type by loanDepot.
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